THE Bangko Sentral ng Pilipinas (BSP) has tightened rules on large cash dealings, requiring transactions above P500,000 — or its equivalent in foreign currency — to be coursed through traceable payment channels such as checks, bank transfers and digital platforms.
The measure, issued under BSP Circular 1218 series of 2025 on Sept. 18, 2025, is aimed at reducing money laundering and other financial crimes linked to the heavy use of cash. The threshold applies to both single transactions and multiple transactions that cumulatively reach the limit within one banking day.
Withdrawals exceeding the cap will trigger enhanced due diligence by BSP-supervised financial institutions (BSFIs). Depending on the risk assessment, banks may require additional documents to establish legitimate business purposes and, if warranted, file a suspicious transaction report. Larger cash payouts may still be allowed once compliance checks are satisfied.
The circular also gives BSFIs discretion to impose lower cash thresholds that are aligned with their internal risk management practices and customer profiles. BSP said the reform strengthens safeguards against financial crime while promoting confidence in the banking system.
“This measure underscores our commitment to ensuring that the financial system is not used as a channel for illicit activities while adapting to emerging risks,” the central bank said in a statement.
Impact on businesses
However, a business leader raised concerns that the policy could slow down operations for firms that rely heavily on cash.
Mark Ynoc, president of the Mandaue Chamber of Commerce and Industry (MCCI), said the cap may create bottlenecks for expansion and growth as additional processes and clearances will be required.
“Time is a critical factor in business, and delays in transactions can affect momentum,” he noted.
Ynoc suggested that instead of blanket restrictions, regulators could focus on stronger profiling of newly established companies — often cited as vehicles for money laundering — while building more robust safeguards that target illicit activity without hampering legitimate businesses.
The move comes as regulators globally step up efforts to discourage large cash-based transactions in favor of digital and traceable payments, improving transparency and oversight in financial markets. / KOC